Article 360 of Indian Constitution – An Analysis

Abstract

Abstract: The thought of emergency has passed into political hypothesis. The basic idea, to make specific emergency provisions in the Constitution, was to protect against unintended emergence of autocracy as a result of internal disorder, external attack or battle. In the Indian Constitution, there is a separate part present for the emergency provisions. Part XVIII, therefore, is a component of innovation in our Constitution. The provisions of Financial Emergency are enshrined under Article 360 of the Constitution. This provision provides a safeguard for the Union Government if any threat exists to the financial stability of India. If the President is satisfied that a situation has arisen whereby the financial stability or credit of India or of any part of the territory thereof is threatened, then he may declares a Financial Emergency. The 38th Amend 1975 states that satisfaction of President to declare a Financial Emergency is immune from Judicial Review but provision is subsequently deleted by 44th Amend which restored power of Judicial Review even over satisfaction of President. A financial emergency has never been declared. A situation for declaring it arose in 1990 to 1991 during Prime Minister Chandra Shekhar’s regime but was avoided by selling off the gold assets of India. The 1992 balance of payments crisis that soon followed, which took India to the verge of bankruptcy, was averted by restructuring and devaluing the rupee, though this situation constituted a classic reason for declaring a financial emergency. Article 360 empowers Union govt to take control over state govt on every financial matter deals by a state. The Financial Emergency has never been imposed in any part of country, neither has Article 360 been used till now.